How much we made (and spent) our FIRST YEAR on Airbnb 2023 | Is Airbnbust real?
ฝัง
- เผยแพร่เมื่อ 30 พ.ค. 2024
- Links mentioned:
My Airbnb Calculator (Free!) - lydiapatel.ck.page/f6c9cdd4f4
Airbnb hosting with me and my husband as your ambassadors - www.airbnb.com/r/mpatel207
Novo (fee free biz checking, awesome interface and app): novo.pxf.io/6ePnmE
Softwares:
AirDNA (free to start): airdna.grsm.io/l9vq3854x0eh
Hospitable ($30 credit): hospitable.com/?grsf=htt7vt
Pricelabs ($10 credit): pricelabs.co/users/sign_up?re...
Upwork (for finding help e.g. assistants, staff): upwork.pxf.io/q4WYNb
Northwest Agent (discounted at $39 only for an LLC): shrsl.com/4869z
Steadily (insurance): lydiapatel.steadilypartner.com/
Business credit cards:
American Express Blue Business Cash ($500 cash bonus, 0% APR 12 months, and 2% cash back on spend) or the Business Platinum at 150k bonus offer with my link (I more than break even with the $400 dell credits, $200 airline, and $120 phone, plus lounges) - americanexpress.com/en-us/ref...
Chase Ink Unlimited (cash bonus of $750, 0% APR 12 months, and 1.5% cash back on spend) - www.referyourchasecard.com/21...
My short term rentals playlist: • Tiny House Airbnb | Ho...
Trello board for house operations: trello.com/invite/b/0XLqfDl4/...
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Title of contents:
0:00 Intro
0:56 Hosting and House Setup Timeline
2:32 Revenue breakdown
7:40 Expense details
15:00 Intangibles
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Business inquiries: hello@lydiapatel.com
All ideas, opinions, bad jokes are my own. Not sponsored content. Links above contain affiliates - which means I get a small commission for telling you about the product/service and feels like a little tip jar for me. This is at no cost to you, and independent of the opinions I've already formed on these products/services prior to making the video. :-)
#shorttermrentals #vacationrental #airbnbhost #airbnbust
This was very helpful!
Great job! Thanks for sharing 😊
Thank you for sharing, it was very helpful.
Thanks for sharing! Very inspirational. I am now thinking about doing it too.
This is awesome, congratulations.
Thank you!
Great infomrative content! Also in healthcare! Love the hustle!
Thank you! Let’s keep going 💪🏼
Very informative video Lydia. Thanks for sharing this. Keep up the great work!
Vatsal! Thanks for watching and being so supportive.
Wow so excited i found your channel, can’t wait to go back and watch all your videos. Thanks for your honesty!
Thanks for watching!
Thank for sharing your true numbers
Thanks for sharing!! there is so much to learn. I like learning along with you! :)
Thanks for being part of my journey!
Loved how simple and honest the video was!!! I'm almost at my year one also!!
Thanks! Hope all is going well with your first year ❤️
Great video and amazing content. Thanks for sharing
Thanks sylvie 😊
Thank you for sharing your knowledge and experience!!! Starting my first air bnb soon! Wish me luck!!!
Best of luck to you!
Thanks for sharing, great content!! We really want to purchase an Airbnb in FL someday
Awesome- Thanks for watching!
Fantastic analysis and honest review. You have gained a regular subscriber. You need to start projecting your TH-cam income, because this channel is gonna 📈
Aw thanks for that encouragement!
Congratulations on making it your first year and getting close to your 1,000 subs! I know what the climb feels like. 😅 Also, Airbnbust feels real to me. Our bookings are definitely slower.
Thank you! I’m hearing it’s super local. With supply up 30% in my area, I wonder if this year will be different too. I’ll have to keep you posted!! Also thanks for saying hi, I’m glad I found your channel!
Hello, as s fellow airbnb member and a digital marketing expert and I help in marketing and optimizing Airbnb listing & rentals property to rank to the first page and also marketing a booking website effectively ?
Many people complain of finding it hard to get booking on their website, fund host, rank to the first page and others but I help them in solving the issues through a strategic marketing implementation.
Let me know if we can connect and change the performance and revenue of your airbnb business.
very good explanation and useful information thanks a lot for sharing keep it up
Thanks ❤️❤️
I’m new to Airbnb hosting as well. I enjoyed your video and honesty .
Thanks for watching Michael!
Hello, as s fellow airbnb member and a digital marketing expert and I help in marketing and optimizing Airbnb listing & rentals property to rank to the first page and also marketing a booking website effectively ?
Many people complain of finding it hard to get booking on their website, fund host, rank to the first page and others but I help them in solving the issues through a strategic marketing implementation.
Let me know if we can connect and change the performance and revenue of your airbnb business.
LOVED your video! I also work in Healthcare and I'm looking to get into the Airbnb business and you make it so easy and realistic to understand! Thank you so much!
Thanks Paola! Best of luck ❤️
Thanks for sharing all the actual numbers and not skipping things like hotel occupancy tax and other things that eat into the bottom line. We are researching for Texas beach house Airbnb and this confirms much of what I’m finding. Best video we’ve seen. Cheers!
Glad it was helpful! Thank you for watching.
@@lydiapatelll can you see the water from your beach house? We’ve been debating on waterfront vs. walkable to the beach.
@@GrayHouseStudio we are a 10 min walk still, but we do see the water in the distance. I would suggest looking at some granular datapoints for local airbnbs, and waterfront vs walkable, and see what the difference in revenue has been.
I love how detailed and honest you are about everything! I'm working on buying a small piece of Land in Texas (where I live) to host primitive campsites on airbnb and hipcamp and it's hard to find real numbers for anything. I'm shocked and impressed someone booked your beach house for an entire month! Whoa!
Glad this was helpful in providing another data point. Best of luck with your camp project, it sounds lovely!
Thank you for the detailed break-down. I've been wondering if all of the new hosts who bought into the market in the past 2 years are actually making a profit or losing money, and this confirms my suspicion that for most recent hosts it is breaking even at best. Keep up the good work and best wishes to you and your business in the new year!
Hi Lydia, thanks for sharing. I have a similar experience where our family has a STR Condo in Kauai. I was super nervous about bookings but in the end we ended up with a positive net profit.
Oh thanks for sharing, I am so glad we are not alone! Kauai STR sounds absolutely lovely.
Hello, as s fellow airbnb member and a digital marketing expert and I help in marketing and optimizing Airbnb listing & rentals property to rank to the first page and also marketing a booking website effectively ?
Many people complain of finding it hard to get booking on their website, fund host, rank to the first page and others but I help them in solving the issues through a strategic marketing implementation.
Let me know if we can connect and change the performance and revenue of your airbnb business.
🤞 for 1000 subscribers! You deserve it, I feel you have very honest and informative channel and very very systematic 👍. As for accommodation business, we're considering to add a small bungalow or two to our new site as a side/support business to 🐎 riding teaching that my wife does. It's not actual since we don't even have a zoning permission for our planned new homestead yet, but I feel more prepared for such option if I need to deal with it in the future. Thanks for your effort!
Horse riding! That sounds so interesting and I would totally be a customer. ❤️ thanks for your kind words as always
I’ve operated my STR for 30 years. Things have changed a lot and continue to evolve at a faster and faster pace. We are learning along the way and developing new skills. I built our STR within driving distance of our primary home and we spend a lot of time there in between guests. It’s a lot of work as you point out. We do most of the maintenance, cleaning and yard work because we can and I can avoid the expense. You presented all the many aspects that go into operating this kind of business. Congratulations and keep at it!
@@joanzach4859 Joan thank you for those wise words, maybe I'll be close to where you are in 30 years 🙂
i love how honest you are, i just purchased 2 homes in the azores islands, portugal. I am in the process of getting the houses ready and getting all the licenses for short term rental, after all the fees, taxes doesn't look like i'm going to make much profit, time will tell
Thanks a bunch for putting this together. It was interesting to see another persons experience in a different market. I own 3 vacation homes in the north georgia area and I can say the airbnbust is real but sometimes more localized. Our available properties went from 1400 to 2100 in the area in ONE year! Ouch! We'll still make a little money this year I think but it's a huge difference in the last 3 years for us.
Oh my! That is a huge increase. Our area supply has increased quite a bit too, I'll have to report back next year.
Hello, as s fellow airbnb member and a digital marketing expert and I help in marketing and optimizing Airbnb listing & rentals property to rank to the first page and also marketing a booking website effectively ?
Many people complain of finding it hard to get booking on their website, fund host, rank to the first page and others but I help them in solving the issues through a strategic marketing implementation.
Let me know if we can connect and change the performance and revenue of your airbnb business.
Is it honestly worth is just to make a "little money this year?" Really starting to rethink if I want to jump in or not at this point.
Thank you for being so transparent. So are you only breaking even with your 3 vacation homes? I'm really trying to gauge if I should jump in the game or not.
I would only get in if you find a really special property or are able to make it special. We are making decent money at the two new places that are just fantastic but the old standard mountain top with a view home that used to bring in $120k ish a year probably won’t break 100 this year. 20k less profit really hurts the rate of return as I refinanced it at 800k to buy the next home. It’s really all about standing out amongst the crowd and being able to maximize rates when you can and just fill the gaps when you can’t. Best of luck!
Thanks. I probably missed the part when you mentioned that all the furniture was accounted as a one time expense.
Really great that you shared so much detail on the real expenses. This will help many people decide if they really want to do this type of investing. To me it seems like more trouble than it's worth but to each his own, $8k/year is decent side hustle money but I wonder what that is per hour of your time? I LOVE the Mrs. Pac Man machine!🎉
Truly, the cash flow is not worth my per hour rate if we factor initial setup :-) In future years where the setup time is reduced, this may be closer to "work" wages at 1-2 hrs a week. The tax benefits and appreciation in my case tips the balance towards this being a good investment for us overall. Hope that helps!
Dang, girl..... you ballin' outta control!
😂😂 gotta stay humble
Amazing content and very detailed information. Thank you for that. Please advise as to how many hours were spent managing this property. This may include the time to manage the property and communication with visitors and contractors; if you can average it in hours, that would be good to know it. I am more concerned to if this type of work can completely be outsourced as well?
It is highly variable. I would say max 6 hours per week on the bad weeks. Other weeks go by where I don't do anything at all. Messaging and pricing can be automated with some supervision; the routine communication with cleaners also can be automated. However we'd still be the primary contact in case something goes wrong, and I think that piece would be hard to outsource (unless you hire a property manager, who would handle all of the above).
@@lydiapatelll thank you for the above detail. I just wanted to have an idea on the time commitment.
Hello, thank you for your work. I love how you present the data and tell the story. I am working on a proposal to take to the bank to start a short term rental for people who have to travel for health reasons ie. dialysis or chemotherapy. Id love to ask you some questions about my idea. Thank you again.
For healthcare travel, my top thoughts are transplant rehab or really sick kids/babies. Not sure I really have much more to offer :-) but maybe if you leave some questions here others can pitch in!
Best of luck with your bank proposal!
5 months on airbnb myself. Following.
Where are you located? Hope all is going well ☺️
I appreciated your detailed analysis of the breakdown of income and expenses on a Airbnb. So many people addressing anything to do with real estate make it out to be a "can't lose goldmine." "I bought a house 10 years ago for $200K, sold it for $400K. Made an easy 100% profit". Usually people don't break down the actual expenses to determine real return on investment. Everyone who profits from the selling and buying of real estate encourages this simple but erroneous math.
Thanks! Investments are a serious decision and I hope this helps get more information out there ❤️
Thanks for the super informative video! May I ask you about the mortgage rate on your airbnb? I am trying to estimate if we can break even with today’s rate. It seems investment mortgage is a bit higher.
This was still just over 4%. Good luck with your analysis!
Hi! Thank you! How did you find your cleaners? Also did you open a separate bank account for all business expenses and did you use something like quickbooks for accounting? I am just about to list our house and I am such a newbie, and a bit frightened!
Our cleaners were a recommendation from our realtor, who had her own vacation rental in the area.
Bank and bookkeeping wise, I used the same software (auto import transactions + attach receipts).. kind of real estate fintech that has a business bank account and bookkeeping capabilities. Here are my top ones that I use each for its own property/project:
Novo (cleanest and smoothest app, no interest): novo.pxf.io/6ePnmE
Baselane (has no app, but does have $300 signup bonus with link and good interest for business checking account and no fees): baselaneaffiliateprogram.pxf.io/DKWX0j
Stessa (I use this mainly for my Airbnb because phone app = upload receipts, but the user interface is uglier compared to the other 2 above): stessa.sjv.io/6eGQxb
(Note these are affiliate links, no pressure on using them, but they do help me a lot!)
Quickbooks I think takes too long to set up, and eventually might be a good option, but up front a free option that's real-estate specific would be my choice.
Lastly, th-cam.com/video/TXmRiIwJXjI/w-d-xo.html is my checklist of everything for the setup from start to finish. Hope this helps, good luck!
@@lydiapatelll awesome thank you !
I appreciate the honesty. I can't believe that net profit. Just one of my long term rentals makes roughly the same net profit as you & without all of the headaches. I would sell the house unless you can afford to keep it if sh*t hits the fan. Air BNBs are susceptible to trends, fads, laws & regulations that are outside of your control. It's a short-sighted investment IMO & not worth it.
Thanks for not lying, and telling it like it is though. Lots of people would and DO talk only about gross, and sell courses on how they made 6-figures on air BNB :D
So many courses and coaches! Haha. My hope was to lay it out here for folks to decide. If the vacation aspect and tax benefits tip the scale, then great! If not, like you said, selling or long term are fantastic options too.
What a flimsy tree! 😂
Right??? 😂
Totally
Really appreciate your honesty! Question, the revenue you quoted is it after AirBnB takes their cut (net vs. gross)? Also, don't you add a cleaning fee as most hosts do. My friends who have AirBnB properties all say the same thing, it's the long term equity of the property they are looking at vs. the short term revenue from the rentals. Also, keep it simple and sweet. Its' great to dress your rental and yes, you'll be staying there too, but just look at hotels. They provide enough to make it comfortable, but have amenities that are durable and long lasting. We old school long term rent out our basement in Toronto Canada and make more than enough to cover our mortgage and utilities (Toronto has one of the craziest rental markets anywhere, rivaling all the big cities). We got 'over asking' for our listing + 12 months up front!
Thanks! The revenue quoted is what Airbnb and vrbo send to my account, so after they take their commission and includes cleaning fees.
Such wisdom on durable amenities and not “overdoing” it!
@@lydiapatelll Thank you for confirming. We thought long and hard about AirBnB before deciding on long term rentals, but he biggest single factor is truly knowing (at least for the most part) who we are renting to knowing especially knowing they are right in our basement. I wish you and your family all the best!
I just recently subscribed to your channel and I am very interested in your journey. You have indicated that you don't live in Florida but decided to invest in a beach house to do AirBnB. Hopefully you can provide me with some guidance. If you don't mind, what were the factors that you looked for in finding a location in Florida. Are you managing your property yourself or did you utilize a property manager to help manage. The biggest concern I have is who will be cleaning the AirBnB if we decide to also purchase a home there in Florida. Any information you can share would surely be appreciated.
Thank you and great content, will be eagerly waiting for additional content and a response.
Happy to help! We self manage. We use a cleaning company who does short term rental cleans around town, found them through our realtor.
As for factors, it was a mix of regulations, market demand (like tourism board data), Airbnb analytics, house prices. Bonus points for personal enjoyment 😉
Good luck with your search!
@@lydiapatelll Thank you for the information and good luck in the AirBnB Financial Adventure.
Thanks for sharing, I’m sure you’ve said it, but what did you pay for the house?
Our all in cost with down payment, furnishings etc was about $100ish k i think.
was I the 1000th subscriber?
I think so! 🥰 thanks for watching!
How are the 2023 property tax and FL insurance? Can you get insurance?
Yes, we got a few quotes from a local agent and online as well
Can you make video how to attract longer term tenant on airbnb? 1+month.
I haven’t used this strategy myself
I'm looking to get involved in Short-term Rentals for tax purposes. How many years can one claim Paper Loss?
Not sure if there is an absolute number. It may be a question of audit risk and what you’re comfortable with, and what the overall profit (before depreciating the real estate) looks like? Not a CPA so definitely ask someone qualified for a personal answer!
FYI coming from a CPA and former IRS agent...watch the travel expenses
Appreciate it!
Fellow CPA here, heard lots of people using travel expense for their businesses but they were more like vacations. IRS will find out whats what if they get audited.
Lydia, tq . are u sure u are not an accountant?? cant imagine my healthcare hubs would be this methodical for anything non surgery related😂😂 but its verrry critical to be so, im sure!!
Haha! I have definitely developed a new respect for accounting experts 🫡
😊👍👍👍
Thanks 😛
can you post the link to your unit in airbnb
I don't publicly because it messes with my algorithm (conversion rate to booking). It's truly not hard to find though ;-)
One or both of you should aspire to obtain “Real Estate Professional” status and file the proper statements with your returns.
Focus on chapter 3 of Vol 2. Books are by Amanda Han and husband? Name, CA CPA firm.
Vol 1 and Vol 2 title Advance Tax Strategies for real estate investors.
On the jungle for about $15 each. Keep them handy as references.
Both were great resources. Our current setup is working well without REPS but certainly a great option to consider in future if circumstances change
So without having Real Estate Professional status you are saying that you are shielding up to 20% of your W2 income from your jobs? Interesting to hear that. Please post a video on how you are doing that.
Lady, you forgot to take into account depreciation. If you take that into account perhaps you have a loss?
Right, depreciation is not included into cash flow. 😊
Anyone interested in investing would do well to do a separate analysis with depreciation, which of course would also account for capex differently (all of my furniture splurges wouldn’t be a one off expense in a single year). And mortgage expense would be treated differently.
Subscriber #779
So you made roughly $8,000 in net profit the entire year? Is this accurate or did I miss something?
yes you have that correct! part of why i wanted to share the numbers is to give everyone a very realistic look at what could happen, so that you could add another data point to any investment decision. :-) even though the revenue came out as projected, my mistake was too much expenditure, and i go into more detail about how my expense budget fell apart in the video.
for myself personally, the appreciation/tax benefit/travel makes it more worthwhile, but it certainly hasn't been as easy as some others have made it seem on youtube.
@@lydiapatelll Do you mind telling how much you spent in total to get the property ready for guest to rent? Just curious about the initial startup cost for a property of this size.
@@amymitchell7996 I think it was around $20k including flying out there, but some of the furnishing came with the house purchase so this is very skewed. I would budget $20/sq for a rough estimate
And that all work is for one house? Omg...I am so scared to start...
It is indeed a lot of work. I learned a lot, and think it was worthwhile/ it’ll get easier next time, but I also don’t want anyone to have rose colored glasses going in!
@@lydiapatelll I know it's a lot of work. Especially if you do it remotely. So. Pls do more videos. Your numbers really encouraging.
@@ladygypsysoul122 thanks for the kind words! :-) if i can do it, it can't be that bad haha.
its not profitable to operate only one unit, i see you will need to scale up to at least 10 units
certainly more units more $
It's a lot of work for 8k dollars.
Really is. Wouldn’t do it for just cash flow.
Staging!!!! Maybe - make the bed well if it’s in the shot????
Thanks for the suggestion, maybe next time. Hopefully the bed didn’t obscure the numbers for you?
You can say “handyman.” It will be okay. Really. No one will cancel you-at least, no one that matters. Don’t be so woke. You’re too smart and mature for that nonsense. Really liked your video otherwise.
Lasciate perdere airbnb e gli affitti brevi, oramai sono davvero troppe le strutture e il prezzo si media a ribasso. Almeno nelle mie due proprieta a treviso. Non sono per nulla soddisfatto .. troppi problemi da gestire e ospiti sempre meno rispettosi delle regole della casa .
So sorry to hear your experience! :-( Definitely more supply in most market these days.
Amazing video, thank you for sharing! What’s the website that you used to find the KPI please? Thanks a lot and all the best 🩷
Pricelabs: $10 credit with this link pricelabs.co/users/sign_up?referral=WY3KiB